Minister of Finance, Zainab Ahmed has stated that the Nigerian government will implement the removal of fuel subsidy gradually.
She made the disclosure Thursday while speaking on the sidelines of the ongoing spring meeting of the International Monetary Fund and World Bank Group.
Christine Lagarde, Managing Director of IMF, advised Nigeria and other African countries to remove fuel subsidy saying the money spent on subsidy can be redirected to health and education.
“The advice from the IMF on fuel subsidy removal was good advice but also we have to implement it in a manner that is both successful and sustainable. We are not in a situation to wake up one day and just remove subsidy,” she told journalists.
“We have to educate the people, we have to show Nigerians what the replacement for those subsidies will be so we have a lot of work to do.
“We also need to understand that you don’t remove large amounts of subsidy in one go, it has to be graduated and the public has to be well-informed on what you are trying to do.”
Fuel subsidy is the money paid by the Federal Government of Nigeria to reduce the cost of refining petroleum products, especially fuel.
DailyPost reports that the Federal Government’s subsidy on fuel rose to N2.4 billion daily in May, from N774 million in March 2018.